How to deal with mobile ad revenue decline: a detailed analysis

insertion order mobile marketing user acqusition

In recent times, the mobile ad industry has witnessed a significant ups and downs, with many apps suffering from a mobile ad revenue decline. This article analyzes the factors contributing to this decline and the repercussions it may have on the industry.

The Current Scenario

2023 forecasts show a staggering decline in the growth rate of mobile ad expenditures. The growth rate which was 26.3% in 2020 has plummeted to an estimated 7.5% for 2023. Despite this, the total value of mobile ad spends is expected to reach $362 billion, up from $336 billion in 2022. Short-form videos, powered by platforms like TikTok and YouTube, are expected to be the main driver behind this increase.

Understanding User Behavior

App developers need to pay close attention to user behavior and preferences. Leveraging data analytics can help in understanding the dynamics of user interactions with ads. For instance, analyzing the type of ads that receive more clicks and the ones that are ignored can be a starting point.

Quality Over Quantity

Focusing on ad quality rather than quantity can be a game-changer. Developers should strive to provide ads that are relevant and engaging to the user. This involves a thorough scrutiny of ad content, ensuring it adds value to the user's experience rather than detracting from it.

Leveraging New Technologies

Embracing new technologies can provide a competitive edge. For instance, Artificial Intelligence (AI) can be used to personalize ad content, thereby increasing engagement rates. Augmented Reality (AR) is another technology that can be utilized to create interactive and immersive ad experiences.

Cross-Promotion Strategies

Developers with a portfolio of several apps have the opportunity to use cross-promotion strategies effectively. It involves promoting one app within another, encouraging users to try different apps from the same developer, and thereby increasing the user base for all the apps in the portfolio.

User Feedback and Reviews

Taking user feedback seriously can be a decisive factor in enhancing app growth. Developers should be responsive to reviews and feedback, making necessary adjustments based on user suggestions to foster a community of loyal and satisfied users.

Privacy Considerations

In an age where privacy is a major concern, developers need to ensure that their apps comply with all regulatory requirements and respect user privacy. Transparency about data usage and ensuring secure data handling practices can build trust with users.

Collaborations and Partnerships

Collaborations with other brands and influencers can help in reaching a wider audience. Such partnerships can create win-win situations, providing exposure and growth opportunities for all parties involved.

Focus on User Experience

Lastly, an undivided focus on enhancing user experience should be the cornerstone of any app development strategy. This involves creating an intuitive user interface, ensuring smooth navigation, and constantly updating the app to keep it fresh and bug-free.

Impact on the Gaming Industry

The gaming sector is not immune to the wider trend, with consumer spending on gaming apps predicted to decrease by 5% this year, amounting to $110 billion. New privacy policies introduced by the Apple App Store and the Google Play Store are believed to be contributing factors to this slowdown.Despite the challenges, gaming apps continue to dominate app store charts, indicating the sector's resilience and potential for recovery.

The Role of Streaming Apps

Interestingly, streaming apps have surged in consumer spending. Apps like Netflix, TikTok, YouTube, and Disney+ have all surpassed the $3 billion revenue mark, hinting at a robust future for the industry. The prominence of new entrants like HBO Max and iQIYI also suggests that streaming might continue to captivate audiences in the coming years.

Mobile Shopping Trends

Mobile shopping has reached new heights, with 50% of Black Friday sales coming from mobile shoppers. This trend shows the vital role mobile shopping plays during the holiday season, and its potential to maintain a strong presence in the market.


As we step further into 2023, the mobile ad revenue decline is a reality that industries have to grapple with. While the ad industry foresees a slump, it is far from a collapse as innovations and adaptations continue to pave the way forward. Companies and advertisers must stay abreast of these changes to navigate the evolving landscape successfully.With various sectors showing resilience and the potential for growth, it is evident that opportunities still abound. Keeping a close eye on trends and adapting strategies accordingly will be key to sustaining and growing in this dynamic environment.

Ready to think differently about user acquisition?

Our team of experts is standing by to give you a personalized consultation.